Eligible income bands for the employment tax incentive will be increased from 1 March 2019.

The Budget deficit is projected to grow to R243bn (4.5% of GDP) from the revised 2018/19 estimate of R210bn (4.2%). It is projected to fall to 4% of GDP by 2022.

Projected economic growth in 2019 has been adjusted downwards from 1.7% to 1.5%. This is expected to rise slightly in future years.

Eskom’s dire financial position and R50bn in foreign debt repayments has resulted in an increase of almost R100bn to R335bn in the 2019/20 gross borrowing requirement, rising from a revised 4.7% to 6.2% of GDP.